Mode of Payment of TDS on transfer of immovable properties

Tax Deduction at Source (TDS) on transfer of certain immovable properties other than agricultural land

The Finance Act 2013 had provided that purchaser of an immovable property (other than rural agricultural land) value exceeding Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.  The rate at which tax is to be deducted is 1%, but it would go up to as high as 20% if the seller does not disclose his permanent account number.This amendment is effective from 1^st June, 2013.

The tax deducted is to be paid electronically on the Income-tax Department's website by filling a form online which has been introduced on the E portal of tin-nsdl. The income tax authorities have done away with the mandatory requirement of Tax deduction and account number for buyers. The buyer will be able to generate the TDS certificate from I-T department's website and provide it to the seller. The seller would also be able to see the TDS credit in 26AS statement.

Point to note:
The provisions of section 194IA are not applicable if a person acquires rural agriculture land in India. For this purpose , the definition of section 2(14) will apply.

The New Payment Challan for TDS requires the Property Purchaser to Furnish following details in the form for payment of TDS :-

• Permanent Account No. (PAN) of Transferee(Payer/Buyer)
• Permanent Account No. (PAN) of Transferor (Payee/Seller)
• Category of PAN of Transferee
• Category of PAN of Transferor
• Full Name of the Transferee
• Full Name of the Transferor
• Complete Address of the Transferee
• Complete Address of the Transferor
• Complete Address of the Property Transferred
• Details of amount paid/Credited
• Tax Deposit Details

Click here to Down Load Challan of TDS on Transfer of Property

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